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Posted Thu, 07 Dec 2023 12:05:53 GMT by
for the tax year 22-23 I only had one payment, which was a single sum from the USA for graphic design work. I received this message when viewing my calculation for this return, "Sorry, we can't automatically calculate foreign credit relief for you. If you wish to work it out for yourself the figures below will help you." I wanted to double-check, that as I filled in a W8-Ben for my work abroad, should I enter 15% of the amount I received for this work in the Foreign tax credit relief for income tax box?
Posted Mon, 11 Dec 2023 15:12:44 GMT by HMRC Admin 5

You will only claim foreign tax credit relief if tax has actually been deducted in the USA.
If so, include the income as part of your self employed turnover and the rate of tax that can be applied, will be based on the tax rate that you pay in the UK.

Thank you
Posted Mon, 11 Dec 2023 15:22:02 GMT by
Hi As my total self employed turnover was less than 12k, do I still need to enter for foreign tax credit relief? Is there a way to determine if tax has been deducted? As I filled in a W-8Ben for this work, does that mean there was automatically a 30% withholding tax taken when the money was wired? I'm afraid based on the amount I can't tell. Additionally, If I am to enter Foreign tax credit relief, In section 6. "View your calculation," do I enter 15% of the amount that I invoiced for in USD, or the amount that I received in my account at the time in GBP?
Posted Fri, 15 Dec 2023 16:29:30 GMT by HMRC Admin 20
Hi Jacob Hepworth-Wain,
Foreign tax credit relief is only applicable if UK tax is due on the same source. as you have stated your income is less than 12k this will be covered by your personal allowances and no UK tax will be due. you will therefore not be able to claim foreign tax credit relief.
Thank you.

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